If you’ve ever just wanted your student loans to disappear, you’re not alone. While it’s impossible to just wish your student loans away, there are some ways to get your loans forgiven.
There are several student loan forgiveness programs that exist for people. If you work in education, public service, healthcare, or some other areas, there are specific programs for this type of work. In addition, some states also help graduates with debt to pay off their loans.
To see if there is a forgiveness option that works best for you, take a look at this overview of the complete list of student loan forgiveness programs:
1. Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness program helps those who work in public service jobs in a variety of fields. The type of job you work, in this case, is not as important as the company you work for. Many jobs qualify for PSLF.
Qualifying loans for PSLF include Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and Direct Consolidation loans.
Federal Perkins loans and Family Education loans are eligible if they are first consolidated via a Direct Consolidation loan.
What are the requirements?
Just because you work in public service does not mean that you will automatically qualify for PSLF. With PSLF, you must make 120 loan payments that can be consecutive or nonconsecutive. These payments must be made under one of these repayment plans:
- Income-Based Repayment (IBR)
- Income-Contingent Repayment (ICR)
- Revised Pay as You Earn (REPAYE)
- Pay as You Earn Repayment (PAYE)
- Standard Repayment
In the case of most borrowers, an income-driven repayment plan will maximize the amount you will have forgiven. It will also lower your monthly payments.
After these 120 payments, you can qualify for 100% loan forgiveness. In order to qualify, you must be employed full-time at a federal, state, or local government agency or at a 501(c)(3) nonprofit organization. The only exception is if the nonprofit is religious-based. These are excluded.
How can you become eligible?
To ensure your eligibility for PSLF, submit theEmployment Certification for Public Service Loan Forgiveness form. PSLF requires this form to be sent in every year of service, so be sure to submit this on an annual basis so that you are on track for PSLF.
Finally, consider consolidating your student loans into a Direct Consolidation Loan. This will help you if you have Perkins or FFEL Loans. It also simplifies your monthly payments, so you have just one loan to pay per month.
To apply for PSLF, you must fill out and submit theEmployment Certification Formannually. FedLoan Servicing will review your information and let you know if you qualify. You may also need to supply other documentation like W-2s and paystubs.
There is currently no limit on the amount of debt that can be forgiven under PSLF. The full amount of your federal student loans is eligible for forgiveness.
2. Forgiveness with Income-Based Repayment (IBR)
Although this forgiveness program isn’t typical, it can still get your loans forgiven.
Through an Income-Based Repayment plan, your loan payments are capped at 10% to 15% of your income. After you make consistent payments under IBR for 20 or 25 years depending on when you borrowed, your remaining loan balance will be forgiven.
The loans that are forgiven under the IBR program can be taxed as income. This is important to bear in mind if you are considering this program, so that a potentially large tax bill won’t surprise you.
To be eligible for IBR, your payments need to be less than what they would be under the Standard Repayment Plan.
Loans that qualify under IBR include:
- Direct Subsidized and Unsubsidized Loans
- Direct Grad PLUS Loans
- Federal Perkins Loans, if consolidated
- FFEL PLUS Loans made to grad students
- Subsidized and Unsubsidized FFEL Stafford Loans
- Direct Consolidation Loans, unless they were used to repay Parent PLUS Loans or FFEL Loans made to parents
To apply for IBR, you must submit an application throughStudentLoans.gov or obtain a paper application through your loan servicer. Next, you will need to provide documentation like proof of income, pay stubs, or tax returns.
3. Forgiveness with Pay As You Earn (PAYE)
Pay as You Earn (PAYE), like IBR, is also a less typical type of forgiveness plan. PAYE caps your monthly payment at 10% of your discretionary income. After you make payments for 20 years, your remaining loan balance will be eligible for forgiveness. These payments are based on income and family size. To be eligible, you must also be a new borrower as of October 1, 2007 with a Direct Loan disbursement after October 1, 2011. Like with IBR, your forgiven loan balance can be taxed as income.
In order to be eligible for PAYE, your PAYE payments must be less than what they would be under the 10-year Standard Repayment Plan. Qualifying loans under the PAYE program include the following:
- Direct Subsidized and Unsubsidized Loans
- Direct Grad PLUS Loans
- Federal Perkins Loans, if consolidated
- FFEL Loans made to grad students, if consolidated
- Subsidized and Unsubsidized FFEL Stafford Loans, if consolidated
- Direct Consolidation Loans, unless they repaid Parent PLUS Loans or FFEL Loans made to parents
You can apply for PAYE throughStudentLoans.gov. You will be required to send in documentation of your income like pay stubs.
4. Forgiveness with Revised Pay As You Earn (REPAYE)
Revised Pay As You Earn (REPAYE) works essentially the same as Pay As You Earn. With this plan, your payments will be capped at 10% of your discretionary income. Undergraduate loans are forgiven after 20 years and Graduate school loans are forgiven after 25 years.
There is a difference between PAYE and REPAYE. With REPAYE, there is no income eligibility. Anyone who has eligible loans can apply.
However, be cautious as you could have high monthly payments with REPAYE. If you start making significant income, you might end up paying more on REPAYE than you would on the standard 10-year plan.
Although REPAYE is open to everyone, be sure to check that your loans qualify. These are the loans that are eligible:
- Direct Subsidized and Unsubsidized Loans
- Direct Grad PLUS Loans
- Federal Perkins Loans, if consolidated
- FFEL Loans made to grad students, if consolidated
- Subsidized and Unsubsidized FFEL Stafford Loans, if consolidated
- Direct Consolidation Loans, unless they repaid Parent PLUS Loans or FFEL Loans made to parents
You can apply to REPAYE throughStudentLoans.gov and will need to provide any necessary documentation.
5. Forgiveness with Income-Contingent Repayment (ICR)
Income-Contingent Repayment adjusts your monthly payments according to your income. You will pay whichever is less: 20% of your discretionary income or what you’d pay on a fixed 12-year plan.
ICR may not lower your monthly payments as much as other plans could. However, it does have a significant advantage. ICR is the only income-driven plan under which Parent PLUS Loans are eligible. If you have Parent PLUS Loans, you can qualify for ICR so long as you consolidate the loans first.
After making 25 years worth of on-time payments, the rest of your loan balance will be forgiven.
Anyone with the following qualifying federal student loans is eligible for ICR: Direct Subsidized and Unsubsidized Loans
- Direct PLUS Loans made to grad students
- Direct Consolidation Loans
- FFEL Stafford Loans, if consolidated
- FFEL Loans made to parents, if consolidated
- Parent PLUS Loans, if consolidated
- Federal Perkins Loans, if consolidated
You can apply for ICR throughStudentLoans.gov.
6. Federal Perkins Loan cancellation
The Federal Perkins Loan Cancellation and discharge program often forgives a certain percentage of student loan debt after every year of service. Over time, you may get up to 100% of your Federal Perkins Loans cancelled
Many people who work in education may qualify for the Federal Perkins Loan cancellation program. If you are a teacher, speech-language pathologist or librarian, or other education professional, you might qualify. Other occupations that may qualify include law enforcement, firefighters, public defenders, nurses, and more. Those in the military may also qualify.
To qualify you need to have a Federal Perkins Loan and work in a qualifying profession. You can apply by speaking with your loan servicer and your school’s student loan office.
7. Student loan forgiveness for teachers
There are many loan forgiveness programs for teachers aside from Public Service Loan Forgiveness and Federal Perkins cancellation.
Teacher Loan Forgiveness
The Teacher Loan Forgiveness program helps teachers pay back their student loans. To be eligible, you must work in a qualifying school for at minimum of five consecutive years. To see if your school qualifies, look over theTeacher Cancellation Low Income directory.
The loan forgiveness amount may vary. It often depends on the subject you teach. Many elementary school teachers receive up to $5,000 while secondary school teachers who teach science, math, or special education could receive up to $17,500 in loan forgiveness.
Only a few loans are eligible for this program. These include the following:
- Subsidized and Unsubsidized Direct Loans
- Subsidized and Unsubsidized Federal Stafford Loans
PLUS Loans are not eligible for the Teacher Loan Forgiveness program.
There are requirements other than having eligible loans for this program. You must also:
- Teach in a qualifying organization including elementary and secondary schools and education service agencies that serve low-income people.
- You must work full time as a teacher for five consecutive years.
- You’re a highly qualified teacher, meaning you have state certification or a teaching license.
- You cannot have loans that were originated before Oct. 1, 1998.
- Your loans must not be in default.
Once you have taught for five consecutive years, you can apply by completing the Teacher Loan Forgiveness Application.
The Teacher Forgiveness Program isn’t the sole option for teachers. Several states also offer loan repayment assistance for teachers. These programs often require state licensure, and a commitment to working for two years in a qualifying area.
8. Student loan forgiveness for nurses
Nurses have access to different federal and state loan forgiveness programs. The NURSE Corps Loan Repayment Program is available to nurses throughout the country.
If you are employed in an underserved community, you might be eligible for the NURSE Corps Loan Repayment Program. You can have up to 60% of your student loans paid over two years of employment. If you work for a third year, you may also qualify for forgiveness toward another 25%.
In order to qualify, you must be a registered nurse, nurse practitioner, or nurse faculty member. You must also work in a critical shortage area, serve a high-needs population, and be at an accredited school of nursing.
Applications for the NURSE Corps Loan Repayment Program are accepted once every year. Guidelines update annually so be sure to check program requirements and guidelines.
In addition to national programs, many states offer loan repayment assistance programs (LRAPs) to nurses.
9. Loan repayment assistance for doctors and other health care professionals
Physicians and other health care professionals like pharmacists have a variety of options for student loan forgiveness. Here are some forgiveness programs for doctors and others working in health care.
Students to Service Program
If you’re in your last year of medical service, you could qualify for significant loan assistance from theStudents to Service Program that provides up to $120,000. To qualify, you must have worked as a primary health care provider at an approved site for a minimum of three years.
National Health Service Corps (NHSC) loan repayment assistance
NHSC loan repayment assistance awards up to $50,000 to licensed health care providers. Qualifying jobs include primary care doctor, mental clinician, behavioral clinician, or dentist. You must also have worked at an eligible site for a minimum of two years.
Loan forgiveness for doctors in the Armed Forces
If you are a health care professional in the military, you may be eligible for a variety of student loan forgiveness and repayment assistance programs. Army doctors can receive up to $120,000 from theActive Duty Health Professions Loan Repayment Program.
Indian Health Services (IHS) Loan Repayment Program
TheIHS Loan Repayment Programencourages doctors to practice in American Indian and Alaska Native communities. To be eligible, you need to commit to at least two years of service. The program will repay up to $40,000 of student loans.
National Institutes of Health (NIH) Loan Repayment Programs
This program offers aid to health professionals in research careers and can repay up to $35,000 of student loans. You must commit to two years of research at a qualifying nonprofit.
The programs discussed are all national, but you can also find loan assistance you’re your state. There are many state LRAPs throughout the nation.
10. Loan repayment assistance for lawyers
We all likely know that law school is not cheap. Luckily, there are some loan repayment assistance programs for lawyers.
Department of Justice Attorney Student Loan Repayment Program
Through the Attorney Student Loan Repayment Program, lawyers who work for three years at the Department of Justice could earn up to $60,000 in loan assistance. In order to qualify, you must have at least $10,000 in federal loans.
John R. Justice Student Loan Repayment Program
This program helps lawyers working in the public sector. If you are eligible, you could earn up to $10,000 per year for a maximum of $60,000.
State and university-sponsored LRAPs
Lawyers can qualify for more than just national programs. There are also state and local repayment programs that lawyers may find useful. See if your state offers loan repayment assistance here, and also talk with your school’s loan office or your job about how to find repayment help.
11. Student loan repayment assistance programs for other careers
Many state LRAPs award loan assistance to professionals in exchange for two years of service. Many jobs that qualify include teachers, lawyers, nurses and doctors, but other careers may also qualify.
For example, many LRAPs for doctors help out pharmacists and veterinarians. Even if you are not a lawyer, teacher, doctor, or nurse, check your state’s offerings to find out if it offers a loan repayment assistance program for you.
12. Military student loan forgiveness and assistance
The military offers loan forgiveness for Army and Navy doctors, and it also helps armed forces members and veterans. Not only does the military offer loan forgiveness for Army and Navy doctors, but it also helps armed forces members and veterans. The Army, Navy, Air Force, and National Guard all offer these programs.
One example is the Army’s College Loan Repayment Program. This program will pay a third of your loans every year for three years. You could receive up to $65,000 in aid. TheNavy programalso awards up to $65,000, and the National Guard LRAP offers up to $50,000.
13. Student loan discharge for special circumstances
Student loan discharge is not the same as student loan forgiveness, but it could still leave you debt free. There are some rare circumstances in which student loans may be completely cancelled. Here are the seven situations in which student loan discharge may occur:
- Closed school discharge
- Discharge for false certification or unauthorized payment
- Loan cancellation for total and permanent disability
- Student loan discharge in bankruptcy
- Borrower defense discharge
- Unpaid refund discharge
- Student loan discharge due to death
If you believe you may qualify or you want to learn more, talk with your loan servicer.
Other options for managing your student loans
While not everyone may qualify for complete or partial student loan forgiveness, there are other methods. If you are struggling with student loans, take a look at these other options:
- Get on an income-driven repayment plan.
- Consolidate or refinance your loans.
- Put your loans in deferment or forbearance.
It is best to explore all options you have when it comes to your student loans. You don’t have to stick with the original payment plan. Do some extra research on finding methods to repay your student loans, it will likely pay off in the long run. If you are struggling with your student loan debt and would like to learn more about your options, contact our friends at aleevly.com.
